A Company's Only Treasury Share Transactions for the Current Year

question 129

Essay

A company's only treasury share transactions for the current year follow: (1) 1,000 of its ordinary shares were purchased on June 1 for $40,000; (2) On July 1, it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share.
1) Prepare the journal entries required to record these transactions.
2) Calculate the balance in Treasury Shares-Ordinary account, on September 1 assuming its beginning-year balance is zero.

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Definitions:

Memory Skills

The cognitive abilities involved in the encoding, storage, and retrieval of information over short or long periods.

Sensory Skills

The abilities related to the detection, identification, and interpretation of sensory information from the environment.

Cooking Food

The process of preparing food by combining, mixing, and heating ingredients, which can increase digestibility and reduce foodborne pathogens.

Caloric Gain

The increase in calories obtained and absorbed from food and beverages, contributing to energy resources or weight gain.